Islamabad, July 13, 2025: In a major financial move, the federal government has extended a massive Rs616 billion in subsidies and financial assistance to various public sector institutions during the first half of the current fiscal year.
According to official data, Rs333 billion was issued in the form of subsidies — a significant 46% increase compared to the same period last year. This sharp rise highlights the government’s intensified support to key sectors amid economic challenges.
Furthermore, eight state-owned enterprises received a total of Rs113.52 billion in direct grants to support operational and developmental needs. These grants were aimed at sustaining essential services, infrastructure development, and easing financial stress in strategically important institutions.
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The jump in subsidies and grants comes amid rising fiscal pressure, signaling the government’s commitment to keeping critical public services afloat. Economic analysts are keeping a close watch on how this surge in financial support will impact the overall budgetary balance and future borrowing.
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The government’s next move in managing subsidy distribution and institutional support will be crucial in navigating the ongoing economic recovery path.
